February 2015 Committee on School Finance Permanent School Fund Item 10

Authorization to Issue a Request for Proposals (RFP) for Investment Counsel Services
for the Permanent School Fund

February 13, 2015

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT

SUMMARY: This item provides an opportunity for the committee and board to approve the issuance of a request for proposals for investment counsel services for the Permanent School Fund.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).

PREVIOUS BOARD ACTION: At the July 2009 meeting, the board voted by unanimous consent to approve the Investment Counsel Services Agreement with NEPC by authorizing an initial contract with two optional 2-year extensions allowed by the contract beginning July 2009 and ending August 31, 2015, as recommended by the Committee on School Finance/Permanent School Fund.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: Not applicable.

FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $1.677 billion during the 2014-2015 biennium.

PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

PUBLIC AND STUDENT BENEFIT: The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.

PUBLIC PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

PUBLIC COMMENTS: None.

ALTERNATIVES: None.

OTHER COMMENTS AND RELATED ISSUES: None.

Staff Member Responsible:
Holland Timmins, Executive Administrator
and Chief Investment Officer of the
Texas Permanent School Fund